Obtala Limited Issue of Equity and Warrants (6745A)

TIDMOBT

RNS Number : 6745A

Obtala Limited

28 March 2017

28 Mar 2017

Obtala Limited

("Obtala", the "Group" or the "Company")

(AIM: OBT)

Issue of Equity and Warrants

Highlights

   --    GBP4m raise by way of new share issue at 20p to Hong Kong HNW 
   --    GBP4m 18 months warrants to be issued with strike price of 20p 
   --    Raising represents a 13.4% premium to yesterday's closing price 

Obtala Limited (AIM: OBT), the African focused agricultural and forestry company, is pleased to announce that it has entered into a conditional subscription agreement dated 27 March 2017 with Wealth Rank Limited ("WRL") to issue 20,000,000 new Ordinary Shares of 1p each in the capital of the Company ("Ordinary Shares") for a total cash subscription price of GBP4,000,000, equivalent to a price of 20p per share, a 13.4% premium to yesterday's closing price. The subscription is expected to close on 2 May 2017 and is conditional on receipt of the subscription monies and various administrative conditions including no suspension of trading in Obtala ordinary shares in the 30 day trading period prior to close.

Application will be made for the 20,000,000 new Ordinary Shares, which will on issue rank pari passu with the Company's existing issued ordinary shares, to be admitted to trading on AIM. It is expected that admission will become effective on or around 3 May 2017.

Following the issue, the enlarged issued share capital of the Company with voting rights attached will consist of 297,637,768 Ordinary Shares of 1p each with one vote per share. There are 99,378 Ordinary Shares held in Treasury. Therefore the total number of voting rights in the Company will be 297,538,390. This figure may be used by shareholders (and others with notification requirements) as the denominator for the calculations by which they will determine whether they are required to notify their interest, or a change to their interest, in the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules or otherwise.

The new Ordinary Shares represent approximately 7.2 per cent. of Obtala's existing issued ordinary share capital and will on issue represent approximately 6.7 per cent. of its enlarged issued ordinary share capital, being Wealth Rank Limited's total holding of Obtala ordinary shares.

Issue of warrants

In accordance with the terms of the subscription agreement, on completion of the subscription the Company will issue warrants to subscribe for up to 20,000,000 new Obtala ordinary shares to WRL at a price of 20 pence per share in accordance with the terms of a warrant instrument under which warrants will exercisable immediately upon issue until 27(th) September 2018. Any exercise of Warrants shall be in multiples of 5,000,000 Warrants. The warrants will not be transferable save to any member of the WRL Group as defined in the warrant instrument.

Miles Pelham, Chairman of Obtala, commented: "I am delighted to have agreed terms for this subscription with BVI incorporated WRL, beneficially owned by a HNW investor based in Hong Kong, which underlines the attractiveness assigned to Obtala's substantial assets as we monetize them in a sustainable manner.

"As noted in yesterday's quarterly update, the Board see substantial opportunity in and around our existing business lines and the subscription proceeds will be applied towards further expansion of the Company's forestry and agriculture operations, via organic growth or acquisitive in nature".

 
Obtala Limited 
 Miles Pelham - Chairman 
 Paul Dolan - CEO 
 www.obtala.com                         [phone] 
ZAI Corporate Finance Limited (Nomad) 
 Peter Trevelyan-Clark / John Treacy    [phone] 
Brandon Hill Capital (Broker) 
 Jonathan Evans                         [phone] 
 

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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March 28, 2017 02:00 ET (06:00 GMT)